Correlation Between Zhejiang Yongjin and Eastroc Beverage
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Eastroc Beverage Group, you can compare the effects of market volatilities on Zhejiang Yongjin and Eastroc Beverage and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zhejiang Yongjin with a short position of Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Eastroc Beverage.
Diversification Opportunities for Zhejiang Yongjin and Eastroc Beverage
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhejiang and Eastroc is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage and Zhejiang Yongjin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zhejiang Yongjin Metal are associated (or correlated) with Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Eastroc Beverage
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to under-perform the Eastroc Beverage. In addition to that, Zhejiang Yongjin is 1.13 times more volatile than Eastroc Beverage Group. It trades about -0.03 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.07 per unit of volatility. If you would invest 13,427 in Eastroc Beverage Group on October 25, 2024 and sell it today you would earn a total of 10,854 from holding Eastroc Beverage Group or generate 80.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Eastroc Beverage Group
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Eastroc Beverage |
Zhejiang Yongjin and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Eastroc Beverage
The main advantage of trading using opposite Zhejiang Yongjin and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Eastroc Beverage can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Rongsheng Petrochemical Co |
| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Postal Savings Bank | Eastroc Beverage vs. Bank of Communications | Eastroc Beverage vs. China Merchants Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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